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Practical Manual of Companies 2022.

Other freedom to depreciate cases

Article 12.3 of the LIS refers in letters a) and d) to the possibility of freely amortizing :

  • The elements of tangible and intangible fixed assets and real estate investments of the public limited companies and limited labor companies used to carry out their activities, acquired during the first five years from the date of their classification as such.

  • The elements of the tangible or intangible assets of the entities that have the qualification of priority associative holdings in accordance with the provisions of Law 19/1995, of July 4, on the modernization of holdings agricultural lands, acquired during the first five years from the date of their recognition as priority exploitation.

• Assumption of freedom of amortization in the automotive industrial sector

The sixteenth Additional Provision of the LIS regulates a case of freedom of amortization for investments made in the value chain of electric, sustainable or connected mobility in the automotive industrial sector that may be made in tax periods ending between April 2, 2020 and June 30, 2021.

For these purposes, investments in new elements of tangible assets that involve sensorization and monitoring of the production chain may be freely amortized, as well as the implementation of manufacturing systems based on modular platforms or that reduce the environmental impact, affecting the industrial sector of automotive, made available to the taxpayer and that come into operation between April 2, 2020 and June 30, 2021, provided that, during the 24 months following the start date of the tax period in which the acquired elements come into operation operation, the total average workforce of the entity is maintained compared to the average workforce of 2019.

Therefore, if these investments have not been fully amortized for tax purposes in the tax periods ending between April 2, 2020 and June 30, 2021, the part that has not been amortized for tax purposes will not be able to be freely amortized in the tax periods. following taxes.

The properties will not be able to benefit from the freedom of depreciation regulated in this provision.

The maximum amount of the investment that may benefit from the freedom of amortization regime will be 500,000 euros.

For the application of this assumption of freedom of amortization, taxpayers must provide reasoned report issued by the Ministry of Industry, Commerce and Tourism to qualify the taxpayer's investment as suitable. Said report will be binding for the Tax Administration. This measure falls under the Temporary National Framework on aid measures to support the economy in the context of the current outbreak of COVID-19 , following European Commission Decisions SA56851(2020 /N), of April 2, 2020, SA.57019 (2020/N), of April 24, 2020, and SA.58778 (2020/N), of October 22, 2020.

This assumption of freedom of amortization is incompatible with the assumption of freedom of amortization established in article 102 of the LIS for small entities, so these entities will have to choose to apply one of the two tax incentives.

Filling in form 200

When the freedom of amortization is applied or has been applied to any of the elements referred to in the aforementioned letters a) and d) of article 12.3 and the sixteenth Additional Provision of the LIS, the following adjustments must be made in the boxes [00309] and [00310] “Other assumptions of freedom of amortization (art. 12.3 a) and d) and DA 16 LIS)” on page 12 of model 200:

  • In box [00310] of reductions, the excess of amortization that results from the accounting amortization relating to any of the elements or investments referred to will be recorded. tax deductible in the tax period subject to declaration.

  • In box [00309] of increases, the amount of amortization relating to any of the elements or investments referred to, recorded in the tax period object of declaration and which, by application of the referred tax rules, had already been deducted in previous tax periods through the corresponding decrease or negative adjustment to the accounting result. Likewise, in the event of transmission of element that has taken advantage of the freedom of amortization, in the tax period in which it is transferred, the amount of the negative adjustments made must be included in this box. previously and that have not yet been positively integrated into the tax base.